Three Boulder marijuana dispensaries close in face of federal deadline

Former Med Shed owner: 'You can't win'

Two of the three Boulder dispensaries that received warning letters from federal prosecutors have closed shop, and the third is offering deep discounts on its remaining product in preparation for closing by the May 7 deadline.

The dispensaries -- Fresh Republic, 1335 Broadway, the Hill Cannabis Club, 1121 Broadway, and The Med Shed, 4483 N. Broadway -- were among 25 Colorado dispensaries to receive letters from the U.S. Attorney's Office that gave them until May 7 to shut down.

The letters were part of a second wave of federal enforcement targeted at dispensaries within 1,000 feet of a school. Earlier this year, the first wave of enforcement forced the closure of 23 dispensaries, none of them in Boulder.

City and state officials cannot stop the federal government from enforcing federal drug law. Under the Obama administration, the Justice Department initially said it would not enforce federal law against people who were complying with their state's medical marijuana laws. However, as the medical marijuana industry exploded, especially in California and Colorado, federal enforcement has increased.

State and local rules require that dispensaries not locate within 500 feet of a school.

The letter advises dispensary owners that federal prosecutors can still enforce marijuana law in states where medical use is legal and that enhanced penalties apply to drug sales within 1,000 feet of a school.

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Signs in front of The Med Shed and Fresh Republic inform customers that the stores are closed, while the Hill Cannabis Club advertises a going-out-of-business sale.

"We're done," said Cannabis Club co-owner Michael Mathis, who ran the dispensary on University Hill since 2009. "There's nowhere to move in Boulder."

The dispensary is offering deep discounts on its remaining marijuana before planning to close Sunday. Mathis, who also owns The Root of the Hill, a hip-hop clothing store above the dispensary, said the letter's timing at least allowed him to avoid planting a new crop that he wouldn't be able to harvest, but it's still upsetting to have to close his business.

"Some patients will lose the strains they've come to rely on," he said. "It's a bummer that our patients who we've worked with over the years to find something that works with their symptoms will have to go somewhere else."

Mathis said he feels singled out for enforcement -- city records indicate there are nine other dispensaries within 1,000 feet of a school -- but in this situation, he's not hoping for equity.

"I don't hope that other people get shut down," he said. "I wouldn't wish this on my worst enemy."

Pete Johnson, owner of The Med Shed, said he and his family invested more than $400,000 in his north Boulder dispensary. He, too, is "done" with the medical marijuana industry.

"You can't win," he said. "It's crazy. I had all my money, my family's money, riding on this place, and you get a letter in the mail, and that's it."

He closed his dispensary in early April, soon after he got the letter.

Signs outside the dispensary direct customers to the 8th Street Wellness Center, a not-yet-open dispensary near Eighth and Pearl streets. Johnson said his longtime manager, Kevin Hooper, will be working there. He said he hopes customers who liked and trusted Hooper will find him at the new location, but he stressed that he has no business ties to the new venture.

The Hill Cannabis Club ?co-owner Michael Mathis weighs medical marijuana for a customer Monday at his dispensary on Broadway in Boulder. The dispensary is closing Sunday because of a federal crackdown.
(
Jeremy Papasso
)

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